About Business-to-Business Buying

Business-to-business buying replicates one business buying from another, meaning that there is no consumer relationship involved. Find out how banks view business accounts with help from a management teacher in this free video on business management.

Comments

Video Transcript

Hi, my name is Mark, and we're going to look at about business-to-business buying. Business-to-business buying replicates one business buying from another. So we're talking about a business relationship rather than a consumer relationship. Now, with today's market evolving, a lot of people now are changing from being employees to running their own organizations -- being entrepreneurs, self-employed -- because the market is changing and there aren't that many jobs for life as there were many years ago. So people have to learn about, amongst other things, buying and buying in a cost-effective and a smart way. Obviously, a lot of large organizations with a...with a well-known branded organization or a corporate image, obviously are treated a little bit differently because they have the name and they have the credibility. So when you look at a company like Ford and you're Mr. and Mrs. Jones's Stationary Shop, there's obviously a big difference. However, as I said, the market is changing and organizations that supply businesses, even bank services -- financial services -- have to look at customers in a much larger and a much wider reaching way. That means they have to serve everyone equally...at least equally well because they want to maintain these relationships over the duration of the business, hopefully, for a long time. I'm going to give you an example because that's probably the easiest way of thinking about things. We're going to...we're going to open a bank account. There's two kinds of bank account. There's a personal bank account and there's a business bank account. But the bank...from a bank's perspective, they are looking at the longevity of that account and what's involved. So when you're setting up a personal account, it's usually a lot more of a straightforward, easy thing to do, and there's no real requirements in place. But with a business bank account, there are many implications involved -- the type of operation. Are you an entrepreneur? Are you a sole trader? Are you a limited organization? Are you a public company? What type of operation are you? So what are the tax implications involved? What incentives is that bank going to offer you to open up your account? Well, it might depend on how much money you have available to deposit. If you're a first-time business, then they will offer you, obviously, let's say, a less favorable package than if you were a larger organization. There are many things to consider.